The document discusses lessons learned from the privatization of UK railways. It outlines both successes, such as increased ridership and revenues, and challenges, including underinvestment in infrastructure, accidents due to miscommunication, and overregulation that degraded performance. A key lesson was that separation of infrastructure and operations increased costs and could distort regulation. Political interference also created regulatory instability that hurt investor confidence. An integrated private model with light regulation was suggested to allow private sector skills and investment while avoiding these issues.

1. LESSONS FROM UK RAIL PRIVATIZATION Iain Murray MA MBA DIC Senior Fellow Competitive Enterprise Institute Washington DC

2. Railways Act 1996

3. The success of privatization Ridership up, revenues up, accidents down

4. Passenger Journeys Climbing Office of Rail Regulation, 2006

5. Revenues Rising Office of Rail Regulation, 2006

8. A Safer Railway

9. The Downside The infrastructure problem and the collapse of Railtrack

10. …with one exception

11. A Significant Infrastructure Problem

23. Considerations for Privatization High Low Information Costs High Medium Cost Delayed Quick Ease of Privatization High Low Competition Separated Model Integrated Model